Cadence Reports Excellent First Quarter Results; Revenue up 41%, earnings per share increase 100% over prior year first quarter.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--April 16, 1996--Cadence Design Systems, Inc. today reported strong growth in revenue and earnings for the first quarter of 1996. Revenue of $163.4 million for the first quarter of 1996 increased 41% compared to the prior year first quarter. Net income and earnings per share for the first quarter of 1996 were $25.6 million and $.42 respectively, an increase of 89% and 100% over the comparable prior year quarter. "This quarter's results represent the realization of years of management initiatives aimed at reducing the revenue seasonality of our business while improving consistency," said Joe Costello A number of people are know by the name Joe Costello
"The momentum we generated in 1995 has carried over into 1996," said Costello. "The strong technology foundation we laid last year, in addition to the continued demand for our professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. offering, has allowed us to maintain a high level of growth." Continued balance in product and services Cadence continued to see the positive effect of its results-oriented business model, realizing strong growth from both its software product portfolio as well as its professional services offerings. First quarter 1996 product revenue increased 45% from the prior year first quarter to $90.2 million. The company achieved particularly strong results in the important areas of logic verification with its Verilog-XL and Leapfrog VHDL (VHSIC Hardware Description Language) A hardware description language (HDL) used to design electronic systems at the component, board and system level. VHDL allows models to be developed at a very high level of abstraction. families; integrated circuit integrated circuit (IC), electronic circuit built on a semiconductor substrate, usually one of single-crystal silicon. The circuit, often called a chip, is packaged in a hermetically sealed case or a nonhermetic plastic capsule, with leads extending from it for place-and-route and physical verification Physical verification A procedure auditors use to ensure that inventory recorded in the book is correct by actually checking out the physical inventory. with its Ensemble series and Dracula/Vampire offerings; and high-level design The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. technology from its Alta Group. Cadence's services business continued to expand, with revenue growing 120% to $23.1 million when compared with the prior year first quarter. The operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: on Cadence's services business also demonstrated consistent improvement, reaching 24% for the first quarter compared to 22% for the fourth quarter of 1995. "In the face of unprecedented levels of complexity and time to market challenges, particularly in deep sub-micron designs, customers are increasingly looking to Cadence for design expertise to assist in the rapid physical implementation of designs. We are particularly pleased that Asian and European customers are now adopting the new model of partnering in the design process reflecting a similar trend we've experienced in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ," Costello said. "And as we improve the execution of our services business, it continues to have a positive impact on our bottom line." During the first quarter, Cadence completed several important chip designs and closed a number of design contracts with major electronics firms. The Company also announced a first-of-its-kind agreement with Mentor Graphics Mentor Graphics, Inc (NASDAQ: MENT) is a US-based multinational corporation dealing in electronic design automation (EDA) for electrical engineering and electronics, as of 2004, ranked third in the EDA industry it helped create. Corp. to provide reciprocal access to each other's tools, an important indicator of the acceptance of Cadence's business model throughout the rest of the EDA (1) (Electronic Design Automation) Using the computer to design, lay out, verify and simulate the performance of electronic circuits on a chip or printed circuit board. industry. Additionally, Cadence and Synopsys, Inc. announced an agreement that represents a first step in a similar reciprocal agreement Reciprocal agreement is an agreement between two U.S. states to allow members of the Bar association from each state to practice in the other. Thus, lawyers who wish to practice in two states do not have to take the bar examination in both states. between the two companies. Finally, Cadence expanded its Design Factory network with the addition of a site in Columbia, Maryland Columbia is a census-designated place and planned community in Howard County, Maryland, United States. It is a suburb of Baltimore, and, to a lesser degree, Washington, DC. It began with the idea that a city could enhance its residents' quality of life. to focus on analog/mixed-signal IC design. Cadence Design Systems (company) Cadence Design Systems - A company that sells electronic design automation software and services. http://cadence.com/. See also Verilog. , Inc. provides comprehensive services and technology for the product development requirements of the world's leading electronics companies. Cadence is the largest supplier of software tools and professional services used to accelerate and manage the design of semiconductors, computers, networking and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. equipment, consumer electronics, and a variety of other electronic-based products. With more than 3,000 employees and annual sales of more than a half-billion dollars, Cadence has sales offices and research facilities around the world. The company is headquartered in San Jose, Calif. and traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. . -0-
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Income
For the Quarters Ended March 30, 1996 and April 1, 1995
(in 000's, except per share amounts)
(Unaudited)
1996 1995
PRODUCT REVENUE $ 90,182 $ 62,110
SERVICE REVENUE 23,098 10,477
MAINTENANCE REVENUE 50,150 43,446
------- ------
TOTAL REVENUE 163,430 116,033
COSTS AND EXPENSES:
COST OF PRODUCT 10,887 11,853
COST OF SERVICE 17,597 9,213
COST OF MAINTENANCE 5,155 3,897
MARKETING AND SALES 52,193 42,220
RESEARCH AND DEVELOPMENT 26,013 20,863
GENERAL AND ADMINISTRATIVE 13,012 9,498
------ ------
TOTAL COSTS AND EXPENSES 124,857 97,544
------- ------
INCOME FROM OPERATIONS 38,573 18,489
OTHER EXPENSE, NET (395) (423)
------- -------
INCOME BEFORE PROVISION FOR
INCOME TAXES 38,178 18,066
PROVISION FOR INCOME TAXES 12,599 4,516
------- -------
NET INCOME $ 25,579 $ 13,550 NET INCOME PER SHARE $ .42 $ .21 WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 60,848 63,155
Cadence Design Systems, Inc.
Condensed Consolidated Balance Sheets
(in 000s)
March 30, December 30,
1996 1995
(Unaudited) (Audited)
CASH AND SHORT-TERM INVESTMENTS $ 83,158 $ 96,641
ACCOUNTS RECEIVABLE, NET 90,908 88,503
INVENTORIES 6,620 8,203
OTHER CURRENT ASSETS 17,698 13,576
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TOTAL CURRENT ASSETS 198,384 206,923
PROPERTY AND EQUIPMENT, NET 133,004 124,103
SOFTWARE DEVELOPMENT COSTS, NET 25,644 25,793
PURCHASED SOFTWARE & OTHER
INTANGIBLES, NET 11,221 8,268
OTHER ASSETS 10,607 8,948
------- -------
TOTAL ASSETS $ 378,860 $ 374,035
CURRENT PORTION OF LONG-TERM DEBT $ 1,420 $ 1,497
ACCOUNTS PAYABLE AND ACCRUED
LIABILITIES 86,054 91,999
INCOME TAXES PAYABLE 9,547 14,524
DEFERRED REVENUE 114,460 92,407
------- -------
TOTAL CURRENT LIABILITIES 211,481 200,427
LONG-TERM DEBT 1,651 1,619 DEFERRED INCOME TAXES 4,701 7,307 MINORITY INTEREST 13,075 12,167 OTHER NONCURRENT LIABILITIES 18,400 18,434
STOCKHOLDERS' EQUITY 129,552 134,081
------- -------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 378,860 $ 374,035
CONTACT: Cadence Designs Systems, Inc. H. Raymond Bingham, 408/944-7503 |
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